You may have heard it on the grapevine that the price of gold has been going up, and you would like to buy gold. If so, you are neither the first, and most likely will not be the last to do so.

However, before changing all your cash for gold, it would be great to know the options available in the trading of gold and other precious metals.

There are at least eight different ways of investing in gold. Each of these methods has its pros and cons, and this article will describe each in turn.

You should know right at the outset that the information here does not qualify as investment advice, and it would be great to consult with a competent advisor before you BuyAndSellGoldSilver.

Investing in Gold Bars

The first way you can buy gold, is through investing in gold bars. In a number of countries, purchase of gold bars can be through banks or bullion dealers.

They come in a variety of sizes and weights, but one of the more standardized bars typically weigh 400 troy ounces.

A troy ounce is the unit used in measuring the weight of gold.

The troy ounce gets its name, not after the ancient city of Troy, but after a town called Troyes in France.

Gold bars are one of the oldest ways of trading your cash for gold. However, you need to be aware of that gold bars are subject to forgery.

One of the most common methods is to create a cavity in the gold bar and fill it with tungsten.

It is therefore advisable to buy gold through a recognized system that audits the process of producing gold bars, from the refining to the storage.

One of those systems is the London Bullion Market or LBMA that is responsible for the Good Delivery Bars. They are the bars alluded to earlier.

Gold Coins and Rounds

Another way of investing in gold is through the purchase of gold coins and rounds.

Several countries around the world issue gold coins. Some of the more commons gold coins include: the American Eagle issued by the US Mint, the Canadian Gold Maple Leaf, the British Sovereign and the Krugerrand. The latter one is the most widely circulated gold coin in the world.

Measuring of gold coins is in fine weight. Fine weight describes the weight ratio that a primary metal has in relation to any other metals or added impurities.

Adding other metals sometimes enhances the practical use of the metal, in items as jewellery or for decreasing the cost.

Measuring the fineness of gold is in karats. The finest gold measures 24 karats, and will often abbreviate as 24K.

Gold rounds differ from gold coins in that they do not have any currency value.

It is cheaper to buy gold rounds than gold coins, and this tends to diminish their value in the eyes of collectors.

Just like gold bars, gold coins are also susceptible to forgery.

Typically, this could happen by gold-plating lead.

Future articles in this series on how to buy gold will describe other ways to trade your cash for gold without physically owning the gold.